How to Conduct a Reserve Assessment

Many nonprofit organizations have or are interested in establishing a reserve fund to sustain the long-term future of the organization and/or provide the organization a source of capital for future development. Learn the six essential steps that every nonprofit should take to determine the ideal reserve fund amount.

Read more

Steps in Preparing for Virtual Audits

Technology is consistently changing the way business is conducted, and this even applies to how some financial audits are currently and will be conducted in years to come. Learn seven steps for making your organization more technology-driven so you'll not only be prepared for virtual audits, but you'll also improve your organization's systems and processes.

Read more

How to Calculate Indirect Rates

Member Content: Many nonprofits develop indirect rates as a mechanism for allocating joint costs among multiple projects and donors. Learn more about what constitutes indirect costs and how to calculate indirect rates. And discover strategies on how to ensure you recover your indirect costs when faced with indirect caps on grants and contracts. 

Read more

Executive Compensation

It is the responsibility of the Board of Directors to set the compensation and benefits package of the CEO/Executive Director. What guidance does the IRS provide nonprofits when setting this compensation and benefits package? What documentation is essential to obtain and review to ensure the compensation is reasonable and not excessive?

Read more

Participation in Political Campaigns

What restrictions are in place that limit 501(c)3 organizations from participating in political campaigns and engaging in lobbying activities?  Discover if participating in political activities on behalf of and/or in opposition to any candidate is a violation of IRS rules.

Read more

Migrating from Paper Checks to E-Payments

Technological advances have revolutionized the way organizations operate, and the continued prevalence of paper checks in payment processes stands out as a bottleneck for many nonprofits. Discover the challenges surrounding the use of paper checks and how best to migrate to e-payments.

Read more

Public Charities versus Public Foundations

Nonprofits in the United States organized under U.S. IRS Code Section 501(c)3 may be classified as either a public charity or a private foundation. Learn the key differences between between these two entities to ensure your organization is classified correctly.

Read more

Managing Foreign Exchange Risk for Nonprofits

More and more nonprofits are operating and/or expanding internationally. Although this expansion is a welcome sign that the organization is growing and expanding services, it also creates a new set of problems -- how to mitigate foreign exchange exposure and prevent unnecessarily losses due to fluctuating foreign currency rates. 

Understanding Nonprofit Financial Statements

Everyone working in nonprofit accounting and finance, including Board members, should have a strong grasp of reading and understanding nonprofit financial statements. Get a handle on how to interpret the unique way in which nonprofits present these financial reports by downloading ANAFP's guide to understanding nonprofit financial statements.

Read more

IRS Public Support Test

Nonprofits in the United States who function as public charities must pass the IRS public support test in order to remain classified as a public charity.  Failing the test will have serious consequences as it will cause the public charity to be reclassified as a public foundation. Learn how to calculate your nonprofit's public support in order to properly file your annual tax return. 

Read more

Overspending a Grant Budget

Overspending a grant budget may have significant financial implications for a nonprofit. Careful consideration needs to be made each time a nonprofit enters into a grant. Learn more about the various scenarios in which a nonprofit may be unable to use grant funds on costs that the organization thought were acceptable and what the organization should do.

Read more

32 Financial Ratios for Nonprofits

Financial ratios help nonprofits measure the financial health of the organization. A nonprofit that tracks important financial ratios are not only in a better position to evaluate an organization’s operations, programs, and financial stability, the results may also be used to benchmark the organization against management objectives, past performance, and similar organizations and competitors.

Read more

Best Practices in Grants Management

Managing a nonprofit's grants and contracts process is a multifaceted and complex task. Learn four best practices that any organization receiving grants should adhere to and the roles and responsibilities of the various staff and team members.

Read more

IRS Public Disclosure Rules for Nonprofits

Member Content: Tax-exempt organizations in the US must comply with the IRS disclosure requirements. Learn about these requirements, how to meet them, how best to recover costs associated with meeting these rules, and which information nonprofits are not required to disclose.

Read more

10 Simple Steps to Prepare for an Audit

Member Content: Audits can be a stressful time for any nonprofit. Finance staff should keep in mind these ten simple steps that will undoubtedly facilitate the audit process.

Read more